The Federal Reserve Bank of New York is reporting that household credit card debt is now over $1 trillion.
The Fed, in its quarterly report, noted that total household debt stands at $17.06 trillion, having risen by $16 billion at the end of Q2 2023.
Credit card debt jumped by $45 billion to push it over the trillion dollar mark – now at $1.03 trillion, a 4.6% quarterly increase. Credit card accounts grew by 5.48 million to 578.35 million.
Mortgage balances were largely unchanged from the previous quarter and stood at $12.01 trillion at the end of June, in large part due to declining mortgage originations and slowing home prices.
Mortgage originations, which include refinances, stood at $393 billion in the second quarter, representing a $70 billion increase from the first quarter.
Auto loan balances rose by $20 billion, as the volume of newly originated auto loans, which includes leases, was $179 billion.
Student loan balances fell by $35 billion and stood at $1.57 trillion.
Overall, delinquency rates were flat during the quarter, but the share of debt newly transitioning into delinquency increased for credit cards and auto loans.
Joelle Scally, Regional Economic Principal within the Household and Public Policy Research Division at the New York Fed, described credit card delinquency rates as normalizing to pre-pandemic levels.
The NY Fed said there was “little evidence of widespread financial distress for consumers but rising balances may present challenges for some. Student loan payments were on pause and the resumption of payments may generate financial strain. Inflation levels remain elevated which may mean higher rates for longer.
